Morgan Stanley raises its Q4 GDP tracking estimate to 5.6% rate from 4.3% after data

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Economists at Morgan Stanley said Wednesday they are raising their fourth-quarter tracking estimate to a 5.6% annual rate from the previous estimate of a 4.3% rate after the economic data released earlier in the morning. In a note to clients, Morgan said the 1.3% jump in orders for durable goods last month along with strong inventories and the 0.5% gain in consumer spending were factors behind the upward revision. Looking ahead, “after a difficult winter,” with consumer spending declining for two straight months, there should be a pickup in the spring along with the broad-based dissemination of a COVID-19 vaccine, the firm said. The economy grew at a record 33.1% rate in the second quarter as businesses reopened from the depth of the pandemic.

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